NZ homeowners can build 70sqm granny flats without consent
Legislation allowing Kiwi homeowners to build granny flats without a building consent has now passed into law, marking a key housing reform under the National-New Zealand First coalition agreement.
From early 2026, homeowners will be able to construct secondary dwellings of up to 70 square metres in their backyards without needing consent, provided they are simple in design, meet the Building Code, and are built by professional tradespeople.
Homeowners must notify their local council before and after construction, and the exemption is expected to add around 13,000 new granny flats nationwide over the next decade, 1News reported.
The reform follows a June 2024 discussion paper announced by Acting Prime Minister Winston Peters and Housing and RMA Reform Minister Chris Bishop, which proposed consent-free dwellings up to 60 square metres as part of the government’s “Going for Housing Growth” agenda. That consultation shaped the final policy and broader National Environmental Standard (NES) to simplify approvals across residential and rural zones, according to another 1News report.
Bishop: “More options for families and workers”
Bishop (pictured left) said the change will give families more flexibility and help ease cost-of-living pressures by expanding multigenerational housing options.
“This will be great for grandparents, people with disabilities, young adults, and workers in the rural sector,” Bishop said.
He added that the government will update national direction under the Resource Management Act to remove the need for resource consents for granny flats.
“We expect the update to be in place by the end of the year,” Bishop said.
Penk: 13,000 new granny flats expected nationwide
Building and Construction Minister Chris Penk (pictured centre) said the legislation could add around 13,000 new granny flats over the next decade, easing housing pressure and stimulating the construction industry.
“We’ll see more work for builders in the pipeline without local councils managing unnecessary consenting burdens for simple building work,” Penk said.
“Local councils will be freed up to focus their attention on more complex building work where the need for an inspection and thorough consenting processes is much greater.”
He said the government is preparing standardised forms and guidance to help builders, councils, and homeowners implement the exemption.
Peters: Supporting affordability and family living
Peters (pictured right) said the initiative will help families live in ways that suit them best.
“Over a quarter of households that do not own their home spend more than 40% of their income on housing,” Peters said. “High housing costs have a greater impact on Māori, Pasifika, and people with disabilities, as well as seniors – so unlocking the space in the backyards of family members opens the door to new ways of living.”
He said granny flats are increasingly popular for families wanting separate space for elderly parents, students, or staff accommodation.
Experts: Small gains in a big housing challenge
Experts have welcomed the reform but say its impact will be modest.
University of Auckland’s Timothy Welch said that 13,000 new units equate to only a 2.6% lift in national housing supply – “genuine progress in reducing regulatory barriers,” he said, but not enough to solve the wider housing crisis.
Welch noted that costs of $200,000-$300,000 per unit and strained city infrastructure could limit uptake.
“Policies intended to improve affordability often primarily benefit those with capital to deploy,” he said.
Small step, steady gains for builders and mortgage advisers
While modest in national housing terms, the exemption is expected to boost small-scale building activity and open opportunities for home-equity and construction finance.
For builders, lenders, and mortgage advisers, it signals consistent pipeline growth from 2026 as more homeowners explore secondary dwellings for family use or rental income.
As Welch put it: “The exemption enables some additional housing and gives property owners new options,” 1News reported
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